News & Analysis as of

Debtors Debt Collection Commercial Bankruptcy

Lathrop GPM

Bankruptcy Court Refuses to Enforce Pre-Petition Waiver of the Automatic Stay

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A recent decision by the U.S. Bankruptcy Court for the Southern District of Illinois underscores that creditors must exercise caution in relying on pre-petition waivers of the automatic stay in collection actions. ...more

Ward and Smith, P.A.

Entitled to Stay Relief? Prove it.

Ward and Smith, P.A. on

For example, you make a commercial real estate loan and record your deed of trust. The borrower pays you for a time but then defaults.  You tried loan forbearance and modification, but it was unsuccessful. The borrower falls...more

Akerman LLP

Your Collateral Can Disappear in Chapter 11

Akerman LLP on

Suppose you have made a loan and your collateral includes a lien on receivables or inventory. If your borrower files Chapter 11, you are in danger of your collateral disappearing during the Chapter 11 case. Here's how....more

Troutman Pepper Locke

What Are Some Alternatives to Chapter 11 and How Do They Affect Creditors? - Creditor’s Rights Toolkit

Troutman Pepper Locke on

There are many reasons why a company might be experiencing financial distress, including overwhelming debt, cash flow problems, substantial litigation claims, and/or economic downturn. Companies sometimes use Chapter 11 as a...more

Katten Muchin Rosenman LLP

California Enacts New Requirements Related to Collection of Commercial Debt in Amounts Less Than $500,000

On September 24, Governor Gavin Newsom signed into law California Senate Bill 1286 that will impact the collection of "covered commercial debt" and "covered commercial credit" in the state after July 1, 2025 (the law's...more

Nelson Mullins Riley & Scarborough LLP

Responding to Automatic Stay Violations: A Cautionary Tale for Overzealous Debtors’ Attorneys

The filing of a bankruptcy petition under any chapter of the Bankruptcy Code creates the ‘automatic stay,’ which prevents creditors from taking any further action against either the debtor or the debtor’s assets during the...more

Miller Canfield

What Do You Do If a Debtor Defaults on Its Confirmed Bankruptcy Plan?

Miller Canfield on

A recent opinion from the Michigan Court of Appeals explained that when a debtor defaults under a confirmed chapter 11 bankruptcy plan, a creditor can enforce its rights in state court, and perhaps also in the bankruptcy...more

Ward and Smith, P.A.

Can I Hold a Debtor’s Bank Account Hostage?

Ward and Smith, P.A. on

For creditors dealing with debtors in the shadow of bankruptcy, a common scenario repeats itself.  The creditor repossesses collateral, attaches an account, or sets off a bank account, and then the debtor files a...more

Jones Day

Kumtor Gold Challenges the Practical Application of the Automatic Stay's Global Reach

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Although the automatic stay contained in section 362 of the Bankruptcy Code theoretically extends worldwide, enforcing it against international creditors, particularly sovereigns, can present practical problems in its...more

Patterson Belknap Webb & Tyler LLP

Preference Avoidance Actions: When Late is Ordinary

A recent case shows how even late payments can be used to satisfy the ordinary course of business defense in a preference avoidance action.  Baumgart v. Savani Props Ltd. (In re Murphy), Case No. 20-11873, Adv. Pro. No....more

Morgan Lewis

Filing Admiralty In Rem Writs Is Outside Scope of Scheme Moratorium Under Singapore Companies Act

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Guidance from the General Division of the Singapore High Court on the extent to which the protections afforded by the statutory moratoria for schemes of arrangement conflict with the ability of maritime claimants to protect...more

Bowditch & Dewey

Six Questions About Involuntary Bankruptcy

Bowditch & Dewey on

Trying to collect money from someone who cannot or will not pay you is frustrating. That old chestnut about throwing good money after bad comes to mind. Placing an individual or firm (your “debtor”) into bankruptcy is a...more

Bowditch & Dewey

Getting Paid in Bankruptcy – Part IV, Employees

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In this series, we look at how various payment rights are treated in bankruptcy. A summary like this could not possibly address every right that might arise in any given bankruptcy case. We have omitted several of the...more

Bowditch & Dewey

Getting Paid in Bankruptcy – Part III, Landlords, Leases, and Licenses

Bowditch & Dewey on

In this series, we look at how various payment rights are treated in bankruptcy. A summary like this could not possibly address every right that might arise in any given bankruptcy case. We have omitted several of the...more

Bowditch & Dewey

Getting Paid in Bankruptcy – Part II, Goods and Services

Bowditch & Dewey on

In this series, we look at how various payment rights are treated in bankruptcy. A summary like this could not possibly address every right that might arise in any given bankruptcy case. We have omitted several of the...more

Bowditch & Dewey

Getting Paid in Bankruptcy – Part I, Lender Claims

Bowditch & Dewey on

In this series, we look at how various payment rights are treated in bankruptcy. A summary like this could not possibly address every right that might arise in any given bankruptcy case. We have omitted several of the...more

Shook, Hardy & Bacon L.L.P.

COVID-19 Client Primer | Maximizing Bankruptcy Recoveries

Maximizing Recoveries in Bankruptcy - One of the many impacts of the COVID-19 pandemic is, and will continue to be, an increase in business bankruptcies. This will affect creditors in many ways, including unpaid debts,...more

Patterson Belknap Webb & Tyler LLP

Bankruptcy Court Addresses Standard For Recovery Of An Alleged Fraudulent Transfer From A Subsequent Transferee

The Bankruptcy Code gives a trustee powers to avoid certain pre-bankruptcy transfers of the debtor’s property to other entities. For example, a trustee can avoid transfers made with the intent to impair the ability of...more

Mintz

And the Tie Goes to … Due Process

Mintz on

Debtors must provide known creditors with actual notice of a claims bar date if they want the bar date to apply to those creditors. Such was the holding in In re Majorca Isles Master Association, Inc., Case No. 12-19056-AJC,...more

Mintz

KB Toys: Don’t Play with Clouded Claims

Mintz on

In a recent decision by the influential Third Circuit Court of Appeals, In re KB Toys Inc., 2013 U.S. App. LEXIS 23083 at *17 (3d Cir. Nov. 15, 2013), the Court decided that “the cloud on the claim” stemming from a...more

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